Pratigyan Fintrade (P) Ltd., Kolkata V. The ITO, Wd-1(4), Kolkata, Kolkata

ITA 807/KOL/2014

• Counselvise Citation: 80723514 RSA 2014
• Duration Of Justice: 1 year(s) 3 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-08-2015
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 01-05-2014
• Court: TRIBUNAL
• Department Lawyers: MD GHAYASUDDINJCITSR
• Assessee Lawyers: VARSHA JALAN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH SMC KOLKATA [BEFORE HON BLE SHRI J. SUDHAKAR REDDY, AM ] ITA NO .807/KOL/2014 ASSESSMENT YEAR : 2007 - 08 ( A PPELLANT ) (RESPONDENT) PRATIGYAN FINTRADE (P)LTD. - VERSUS - I.T.O., WARD - 1 (4 ) , K OLKATA KOLKATA (PAN: AABCP 4109 K) FOR THE APPELLANT: MISS.VARSHA JALAN, ADVOCATE FOR THE RESPONDENT: MD.GHAYASUDDIN,JCIT,SR.DR DATE OF HEARING : 19.08 .2015 . DATE OF PRONOUNCEMENT : 27.08.2015. ORDER THIS APPEAL OF ASSES SEE ARISES FROM THE ORDER OF LD. CIT(A) - I , KOLKATA IN APPEAL NO . 1020/CIT(A) - I/WD - 1 (4)/ 2009 - 10 DATED 17.01.2014 . ASSESSMENT WAS FRAMED BY I.T.O., WARD - 1 (4 ), KOLKATA U/S 143(3 ) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REF ERRED TO AS THE ACT ) FOR A.YR . 2007 - 08 VIDE ITS ORDER DATED 05.10 .2009. 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST THE ORDER OF LD.CIT(A) CONFIRMING THE DISALLOWANCE OF EXPENSES AMOUNTING TO RS.15,000/ - ON ADHOC BASIS. 3. BRIEFLY STATED FACTS ARE THAT THE ASSESSEE IS A PRIVATE LIMITED COMPANY AND IS IN THE BUSINESS OF SHARES, SECURITIES, LOANS AND ADVANCES. DURING THE YEAR THE LD.AO HAS DISALLOWED EXPENSES FOR RS.15,000/ - AS THE ASSESSEE HAS FAILED TO PR O DUCE THE DETAILS, VOUCHERS, BOOKS OF ACCOUNTS FOR VERIFICATION OF T HE EXPENSES . AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE LD.CIT(A), WHO HAS UPHELD THE ACTION OF THE LD.AO. AGGRIEVED BY THE ORDER OF LD. CIT(A), THE ASSESSEE PREFERRED AN APPEAL BEFORE THIS TRIBUNAL. ITA NO. 807/KOL/2014 PRATIGY AN FINTRADE (P) LTD. A.YR. 2007 - 08 2 4. I HAVE HEARD THE RIVAL SUBMISSIO NS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. MISS.VARSHA JALAN, ADVOCATE SUBMITTED THAT THESE EXPENSES ARE ESSENTIAL TO MAINTA IN ITS ESTABLISHMENT AND FOR COMPLYING WITH THE STATUTORY OBLIGATIONS WHICH ARE MANDATORY EVEN IF IT DOES NOT CARRY ON ANY BU SINESS. IN SUPPORT OF HER CONTENTION SHE RELIED ON THE FOLLOWING DECISIONS OF THE HON BLE CALCUTTA HIGH COURT : I)CIT VS GANGA PROPERTIES LTD. 199 ITR 94 (CAL) II)CIT VS. NEW SAVAN SUGAR AND GUR REFINING CO.LTD. 185 ITR 564 (CAL) SHE HAS ALSO SUBMITTED T HE COPY OF AUDITED BALANCE SHEET AND THE INCOME TAX RETURN. THE LD. DR RELIED ON THE ORDERS OF THE AUTHORITIES BELOW. AFT ER GOING THROUGH THE SUBMISSION, I AM OF THE CONSIDERED VIEW THAT EVEN IF THE COMPANY DOES NOT CARRY ON THE BUSINESS , IT HAS TO MAINTAI N ITS ESTABLISHMENT FOR COMPLYING WITH STATUTORY OBLIGATIONS , FOR WHICH CERTAIN EXPENSES NEED TO BE INCURRED. SO I ALLOW THE A PPEAL IN FAVOUR OF THE ASSESSEE BY DELETING THE DISALLOWANCE OF RS.15,000/ - . 5. IN THE RESULT THE APPEAL OF THE ASSESSEE I S ALLOWED. ORDER PRONOUNC ED IN TH E COURT . SD/ - [ J. SUDHAKAR REDDY ] ACCOUNTANT MEMBER DATE: 27.08.2015. R.G.(.P.S.) COPY OF THE ORDER FORWA RDED TO : 1 . PRATIGYAN FINTRADE (P)LTD., P - 27, PRINCEP STREET, 3 RD FLOOR, KOLKATA - 700072. 2 I.T.O., WARD - 1 (4 ), KOLKATA. 3 . THE CIT - I , KOLKATA 4. THE CIT(A) - I , KOLKATA. 5 . DR, KOLKATA BENCHES, KOLKATA TRUE COPY , BY ORDER, DEPUTY /ASST. REGISTRAR , ITAT, KOLKATA BENCHES ITA NO. 807/KOL/2014 PRATIGY AN FINTRADE (P) LTD. A.YR. 2007 - 08 3